{"id":6778,"date":"2010-02-12T08:52:11","date_gmt":"2010-02-12T13:52:11","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2010\/02\/12\/audusd-double-top-formed-severe-downturn-on-the-way\/"},"modified":"2010-02-12T08:52:11","modified_gmt":"2010-02-12T13:52:11","slug":"audusd-double-top-formed-severe-downturn-on-the-way","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/12\/audusd-double-top-formed-severe-downturn-on-the-way\/","title":{"rendered":"AUD\/USD Double-Top Formed; Severe Downturn on the Way?"},"content":{"rendered":"

By Greg Holden <\/strong>– The AUD\/USD\u2019s long-lasting bullish channel was finally breached a few weeks back and what we see happening now may be described as the formation of a \u201cdouble-top,\u201d or \u201cM,\u201d formation on the weekly chart, but on a somewhat minor scale.<\/p>\n

A \u201cdouble-top\u201d formation is when the price moves to a high point, but then corrects downward only to bounce up once more and create a second peak, forming what looks like the letter \u201cM.\u201d Typically when this formation occurs the completion of the second top indicates an impending retracement of the previous trend which brought it to its first peak. A clear example of this can actually be seen in this pair below months prior to today.<\/p>\n

In the middle of chart below you can see a \u201cdouble-bottom\u201d or \u201cW\u201d formation, which is essentially the same thing, but upside down. Notice how it dropped, formed a low point, corrected upward, then dropped to a second low point\u2026 and then retraced the entire downward movement that formed the initial low point to bring us to where we are today.<\/p>\n

Now the previous \u201cW\u201d formation was an extended and very pronounced formation, which is why I say that this one is a minor version of that. Given the strength of Australia\u2019s economy recently I wouldn\u2019t expect it to retrace the entire movement back down to 0.6000. But a retracement to the next significant level, near 0.8000 wouldn\u2019t be too far fetched, in my opinion.<\/p>\n

A few technical points:<\/p>\n

Point 1: Here you can see the \u201cdouble-top\u201d as it is forming.<\/p>\n

Point 2: The Relative Strength Index (RSI) seems to show a steadily declining price movement, seeming to suggest that the downward move has built some momentum after breaking its bullish channel.<\/p>\n

Point 3: The MACD\/OsMA shows a wide-arcing bearish cross, which only strengthens the notion that an impending downward movement may be in the works.<\/p>\n

AUD\/USD Weekly Chart<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Forex Market Analysis<\/strong><\/em> provided by\u00a0Forex Yard.<\/strong><\/a><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Greg Holden – The AUD\/USD\u2019s long-lasting bullish channel was finally breached a few weeks back and what we see happening now may be described as the formation of a \u201cdouble-top,\u201d or \u201cM,\u201d formation on the weekly chart, but on a somewhat minor scale. A \u201cdouble-top\u201d formation is when the price moves to a high … <\/p>\n

Continue reading “AUD\/USD Double-Top Formed; Severe Downturn on the Way?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6778","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=6778"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6778\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}